Q2 2024 BWX Technologies Inc Earnings Call Transcript
Key Points
- BWX Technologies Inc (BWXT) reported strong second quarter results with 11% organic revenue growth, 18% adjusted EBITDA growth, and 26% adjusted earnings per share growth.
- The company increased the lower end of its adjusted earnings per share guidance to a range of $3.10 to $3.20 and reaffirmed its full-year operational guidance for mid-single digit revenue and adjusted EBITDA growth.
- Positive demand momentum was observed in global security, clean energy, and medical markets, with governments prioritizing regulatory clarity and funding for nuclear power.
- BWXT's Government Operations segment saw 10% revenue growth and 13% adjusted EBITDA growth, driven by newer special materials and micro reactor projects, as well as solid volumes in the naval propulsion business.
- The company secured a significant contract award for the Pantex plant in Amarillo, Texas, under a 20-year contract, further solidifying its leadership in the NNSA space.
- The lower tempo of work associated with the ordering wall for the Ford class aircraft carrier is expected to persist through at least 2025, potentially impacting operations.
- Investments in facility and process line modernization, such as in the Nuclear Fuel Services plant, may create modest near-term margin headwinds.
- The micro reactors and advanced reactor development programs, while promising, are still in early stages and carry lower margins until they become more mature.
- Free cash flow in the quarter was $36 million, down from $41 million in the second quarter of 2023, due to higher working capital requirements.
- The company faces challenges in ramping up workforce and capacity to meet overlapping demands from multiple projects, including the small modular reactor at Darlington and the Pickering refurbishment.
Ladies and gentlemen, welcome to the BWX Technologies second quarter 2024 earnings conference call. (Operator Instructions)
I would now like to turn the call over to our host, Chase Jacobson, BWX. Vice President of Investor Relations. Please go ahead, sir.
/ -
Thank you, Kathleen. Good evening and welcome to today's call. Joining me are Rex Geveden, President and CEO, and Robb LeMasters, Senior Vice President and CFO. On today's call, we'll reference the second quarter 2024 earnings presentation that is available on the Investors section of the BWXT website.
We will also discuss certain matters that constitute forward-looking statements. These statements involve risks and uncertainties, including those described in the safe harbor provision found in the investor materials in the Company's SEC filings. We will frequently discuss non-GAAP financial measures, which are reconciled to GAAP
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
